Highlights

  • Samples are with a South African laboratory, and results are expected in late Q4 2026 or Q1 2027.
  • The company calculates 1.10 quarters of funding, below the two-quarter level that triggers extra disclosures.
  • MRG Metals (ASX:MRQ) has reported a quarter in which it secured funding for its next phase at.
  • The company raised $1,201,500 through a placement and share purchase plan to fund diamond drilling at the.

MRG Metals (ASX:MRQ) has reported a quarter in which it secured funding for its next phase at the Garies rare earths project in South Africa, and, after quarter end, saw the South African regulator accept its mining right application.

Central Development

The company raised $1,201,500 through a placement and share purchase plan to fund diamond drilling at the DrillTarg target and work toward a maiden JORC (2012) Mineral Resource Estimate. On 7 October 2026 the Department of Mineral and Petroleum Resources accepted the Garies mining right application, which was lodged on 12 June 2026 and seeks an initial 10-year term. The department must decide within 300 days of acceptance. The company notes that acceptance does not authorise it to begin mining.

Garies Project

Garies is a 70 per cent owned, 275 square kilometre tenement in the Northern Cape, with monazite-hosted rare earth mineralisation in magnetite veins. DrillTarg is one of 23 identified targets, two of which have been drilled. A reverse-circulation program of 61 holes reported in March returned a peak of 6.6 metres at 4.49 per cent total rare earth oxides. Metallurgical work reported in April achieved about 72 per cent monazite recovery to a concentrate of about 51 per cent monazite using conventional physical processing, with the company describing a pathway to higher recovery.

The company also reported gallium associated with the mineralisation, with two concentrates assaying 880 and 573 parts per million gallium oxide. Testwork indicates the gallium sits in pyrite, and further testing is planned. These are exploration and laboratory results, not a resource or a demonstrated commercial process.

The funded work plan covers radiometric and magnetic surveys, 380 metres of diamond drilling (the first diamond core at Garies), the maiden resource estimate, a helicopter survey extended to 110 square kilometres and stream sediment sampling to rank new targets.

Regulatory Conditions

During evaluation the company must complete public consultation, an environmental impact assessment, a water use licence application and registration with the National Nuclear Regulator. Black economic empowerment ownership documentation is due by 22 November 2026, as South Africa requires a minimum 30 per cent such shareholding for new mining rights. Grant is not assured.

Mozambique

At the Adriano and Fotinho licences, covering 396 square kilometres, the company completed a step-out auger grid of about 1.6 square kilometres around Target Area 2. About a quarter of holes did not reach subcrop because of the water table. Samples are with a South African laboratory, and results are expected in late Q4 2026 or Q1 2027. Separately, the 30 per cent interest in a titanium dioxide joint venture awaits transfer of tenements, still subject to a Mozambique tax assessment.

Cash And Funding

Cash at 30 September was $495,000, up from $255,000, with net operating outflow of $225,000 and exploration payments of $223,000 net of a $50,000 reimbursement. The company calculates 1.10 quarters of funding, below the two-quarter level that triggers extra disclosures. It said the share purchase plan closed on 5 October and raised $476,000 and that director fees will be paid in shares, subject to shareholder approval.

Risks

MRG is an explorer with no production. Its resource is not yet defined, outcomes at Garies depend on drilling, permitting and the ownership requirements above, and further funding will probably be needed. Mozambique results remain pending.

Next Milestones

The company lists completion of geophysical surveys and diamond drilling, delivery of a maiden resource, submission of ownership documentation by 22 November 2026, further gallium testwork and Adriano assays. Michael Rose, who joined the board as a non-executive director on 31 August 2026, is to lead pilot plant development and seek a strategic partner.